Perdana Karya secures $12m loan to boost coal mine operation

Indonesian stock exchange-listed coal miner and contractor PT Perdana Karya Perkasa has received a loan commitment worth up to US$12 million from Komatsu Autofinance to support the company?s coal mine operation, Investor Daily reported on Monday.

Perdana Karya?s finance director Soeroso said in Jakarta on Saturday that about $7 million of the pledged loans, which carry an interest rate of 6.25 percent per annum, had been disbursed.

?The remaining $5 million will be disbursed soon,? he said, adding that in addition to Komatsu Autofinance, Perdana Karya was also still negotiating additional loans of about Rp 30 billion from PT Astra Sedaya Finance.

The loans, according to him, will be used to buy a number of heavy equipment to be used in the company?s coal concession areas in Berau and Malinau, East Kalimantan, and to finance mining infrastructure in the area.

He explained that the company had decided to take out the bank loans after it cancelled its plan to issue Rp 200 billion bonds. ?The bonds will, instead, be issued next year,? he added.

Perdana Karya Perkasa targeted to produce 1.1 million tons of coal this year.

The company?s corporate secretary Henry Chevalier said in December 2007 that the company would continue explorations in five concessions to increase production. The five concessions are Energi Mineral Kertanegara, Gerbang Mineral Kertanegara, Dallah, all in Kutai Kartanegara regency, East Kalimantan; Semoi project in Penajam Paser Utara regency, East Kalimatan; and Perdana Karya Perkasa in South Sumatra. (*)